Jobs, Wages, & Unemployment | Media Matters for America

Jobs, Wages, & Unemployment

Issues ››› Jobs, Wages, & Unemployment
  • Black man's work, white man's credit: Fox’s Stuart Varney credits Trump for an Obama-era economic trend

    Varney claims April 2018’s record median household income is a stark contrast compared to “a dead flat line” under Obama, except the upward trend began in 2014 thanks to Obama.

    Blog ››› ››› BOBBY LEWIS

    On the May 24 edition of Fox News’ Fox & Friends, Fox Business host Stuart Varney trumpeted a report showing last month had the highest median U.S. household income since January 2000, which Varney called a “direct result of President Trump’s policies.” However, the growth seen under Trump is a continuation of a trend begun during the Barack Obama administration -- even though Varney falsely claimed there was no household income growth under Obama.

    STUART VARNEY (HOST, VARNEY & CO.): President Trump's growth policy, his growth program, is working. We are gradually returning to prosperity. And it is the direct result of President Trump's policies. He has gone for tax cuts, he has gone for deregulation, and he has turned the economy around. And with it, he has turned around that feeling of prosperity that households have. That graphic you just showed: January 2017, $59,400 median household income. Half the population more, half the population less. OK. Fast-forward to April 2018, you’re up $2,000 per household. Three percent higher in, what, 15 months. That compares to a dead flat line throughout the eight Obama years. We are returning to prosperity because of President Trump's policies.

    Varney’s bizarre claim that median household income was “a dead flat line throughout the eight Obama years” is a fabrication. Household income fell because of the George W. Bush-era Great Recession, which Obama’s policies began to reverse. The median household income Varney congratulated Trump for is the latest data point in a consistently upward trend that began during the Obama administration, in late summer 2014. More broadly, data shows that median household income has generally been trending upward since summer 2011. 


    Image via TalkMarkets

    As The Washington Post’s Nicole Lewis explained in December 2017, members of the Trump administration, including Trump, like to brag about the economy and assign him outsize credit for it. However, due in part to the complexities of the economy and the pace of rolling out presidential policy, Trump’s economic policy has yet to fully impact the nation, whereas “we are probably still feeling the effects of policies laid out by the previous administration.” 

    Regular readers of The Fact Checker know we automatically award Two Pinocchios to anyone (editorials included) who gives sole credit to a president for economic improvements. That’s because the U.S. economy is complex, and the decisions of companies and consumers often loom larger than the acts of government.

    Moreover, it usually takes time and effort for presidential policies to work their way through the country. One year into the presidency, we are probably still feeling the effects of policies laid out by the previous administration.

  • Fox & Friends finally admits right-wing media's favorite economic statistic is misleading

    After years of hyping declining labor force participation rate, Fox & Friends points out that the statistic isn’t useful for measuring economic activity

    Blog ››› ››› MEDIA MATTERS STAFF

    This morning, Fox & Friends pointed out that the labor force participation rate, a favorite statistic cited by Fox News during the Obama administration to dismiss economic successes, can be a misleading indicator of the health of the job market. Fox spent years using a declining labor force participation rate to portray the job market in a negative light while hyping grossly exaggerated claims about the so-called “real unemployment rate.” And President Donald Trump also used the network’s purposeful distortion of the labor force statistic during the 2016 election campaign.

    In 2010, the Pew Research Center reported that “10,000 Baby Boomers” will reach retirement age “every day for the next 19 years,” and, as The Washington Post’s Glenn Kessler pointed out in 2014, “The composition of the labor force has been affected by the retirement of the leading edge of the Baby Boom generation.”

    On the December 5 edition of Fox & Friends, when co-host Brian Kilmeade mentioned the lagging labor force participation rate during a discussion of the health of the economy under Trump, co-host Steve Doocy was quick to point out that the statistic was misleading because “a lot of those people are retired.” The about-face is yet another example since Trump's inauguration in which Fox has abandoned its conspiratorial portrayals of the labor market, often going out of its way to put a positive spin on numbers they would have trashed during the Obama administration:

    BRIAN KILMEADE (CO-HOST): There’s two things I'm looking at, the trade deals and the workforce. So only 60 percent of the workforce is working right now. How do we get those people into the game?

    STUART VARNEY: I don't have an answer to your question. I do believe, however, that when you restore prosperity and you've got real growth, people will be enticed back into the labor force because there’s a decent job available. It makes sense to go back into the labor force, if that’s the case.

    STEVE DOOCY (CO-HOST): But also, a lot of those people are retired.

    VARNEY: Yes, a lot of the people are retired, that’s very true.

    KILMEADE: Yeah, I don't want to make them work again. I mean they’re fine.

    DOOCY: Move to Florida.

    VARNEY: I should be retired.

  • Ali Velshi and Stephanie Ruhle unleash a torrential debunking of a GOP congressman's tax policy lies

    This is exactly how journalists need to treat the Republicans’ messaging nonsense on their giveaway to the rich

    Blog ››› ››› CRAIG HARRINGTON

    MSNBC hosts Ali Velshi and Stephanie Ruhle thoroughly debunked conservative talking points about the Republican Party’s pro-corporate tax policy during an interview with an ill-prepared member of Congress, who was attempting to build support for his party’s proposed tax changes that overwhelmingly favor the wealthy.

    During the December 4 edition of MSNBC Live with Velshi and Ruhle, Velshi presented a detailed outline of the many ways in which Republican tax bills in the House and Senate will fall short of GOP promises and commitments. Velshi noted that numerous independent analyses have shown the GOP plans will add upwards of $1 trillion to the national debt, and pointed out that despite “huge changes made to our tax code … we’ve seen no observable shift to long-term growth rates in the last 150 years.” Velshi also pointed to a survey conducted by the University of Chicago’s Booth School of Business, which found that none of the 42 leading economists surveyed believe the plans will be able to boost economic growth rates by enough to make up for lost revenue. He concluded the segment by pointing to a recently-released Goldman Sachs analysis of the Senate tax bill, which concluded that economic growth stemming from the tax bill will be lower than Republicans have claimed, and, as Velshi stated, “possibly even … negative” after a few years:

    Immediately after outlining all the problems in the GOP tax plans, MSNBC invited Rep. Chris Stewart (R-UT) on the program and gave him an opportunity to defend his party’s policy priorities. Stewart’s performance did not go as he might have anticipated, with co-hosts Velshi and Ruhle taking turns debunking GOP talking points and pillorying Stewart’s excuses for the tax plan.

    The co-hosts rebuffed Stewart’s repeated assertions that tax cuts for profitable corporations and wealthy individuals will boost economic growth (a 2012 Congressional Research Service study found no correlation between income tax rates and economic growth, and a 2014 study from the Brookings Institution argued the relationship between tax cuts and growth was “theoretically uncertain”), they corrected his false claim that the United States has the world’s highest corporate taxes (effective corporate rates are the same as other developed countries), and they called out his false claim that “the American people want us to do this” (the GOP tax plans are actually extremely unpopular). When Stewart claimed the GOP plans are effective in simplifying the tax code, Ruhle challenged him over and over to name a single corporate loophole that is being removed (he couldn’t), and both co-hosts stung Stewart over how Republican plans fail to address the so-called “carried interest” loophole, which helps extremely high-income individuals avoid paying taxes on some of their income.

    By the end of his nearly 11-minute grilling, Stewart was actually defending the discredited theory of “trickle-down economics” by name, which Velshi correctly noted was such a disaster in Kansas that the state’s Republican-dominated legislature had to abandon their conservative tax agenda.

    This takedown from Velshi and Ruhle is not the first time the MSNBC duo has discredited the GOP’s hollow economic message. Both Velshi and Ruhle have spent considerable time over the past several months pointing out that the Republican agenda favors wealthy individuals, profitable corporations, and the Trump family at the expense of lower- and middle-income Americans. This important work in correcting purposeful misinformation about the GOP's right-wing agenda is all the more important as Republican lawmakers prepare to enact tax policy changes that could affect millions of Americans for years to come.

  • 4 ways right-wing media are shilling for tax reform (and why they're wrong)

    ››› ››› JULIE ALDERMAN

    Right-wing media have been relying on debunked myths and partisan spin in order to defend the Republican tax overhaul efforts, which have passed in the House of Representatives and advanced in the Senate. Conservative media figures are pushing falsehoods about the corporate tax rate and the impact the proposals would have on the wealthiest Americans while downplaying the negative impacts of repealing the Affordable Care Act’s individual mandate.